Contracting in Ireland, from Mac Accountancy

From Richard Collins of Mac Accountancy Services
108 Lower Baggot St Dublin 2 T 6620120 F 6620104

Why Become a Contract Professional?
Becoming a contract professional offers you the opportunity to maximise your earning potential. Contract professionals typically earn substantially more than their full-time counterparts. You also get the opportunity to negotiate your conditions of work such as your daily rate, hours of work and length of contract. You can have some flexibility regarding when and for how long you want to work.
What Do You Need?
You will need a trading solution and an accountancy service which minimises taxation and administration while maximising your take-home pay. At Mac Accountancy Services we take care of the entire administration process. We receive your timesheet and invoice your agency. Once your agency pays your invoice we make payment to your personal bank account on the same day through online banking.
What to Avoid.
Agencies will not accept invoices from Sole Traders. You need to have a limited company structure, either your own limited company or an umbrella solution, where you are either an employee or a shareholding director of a limited company that acts as an incorporated entity between you and your agency.
With a limited company trading solution you are entitled to offset tax deductible business expenses incurred by you for business purposes as deemed allowable by Revenue. However, you cannot claim for expenses not directly related to you earning your income such as dry-cleaning costs, shoe repair or flying lessons.
Each time you are paid you must receive a payslip, and preferably a calculator spreadsheet to show the value of your billable hours. This payslip should show deduction for tax and PRSI and ensures that your tax affairs are always up to date.
At the end of your contract you should no longer be charged for invoicing and payroll services and you should receive a P45 which summarises your tax affairs for the year to date.
You should avoid companies providing accounting solutions which are worked on a scaled fee, or a percentage of your invoice value. At Mac Accountancy Services we provide our umbrella limited company solution for a flat fee of € 195 per month deducted before you pay tax. Our bespoke limited company accountancy solution where you have your own limited company costs €175 per month and this is a business expense which can be offset against tax.

Summary
You need a professional accountancy service which will invoice for your services and pay you in a timely fashion, ensuring that your tax affairs are kept up to date and your legitimate business expenses are claimed.

From Richard Collins of Mac Accountancy Services
108 Lower Baggot St Dublin 2 T 6620120 F 6620104 http://www.macs.ie/